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The 'Friction Tax': Why Buyers Overestimate Repair Costs

Orlando broker Bent Danholm reveals the 'friction tax': buyers often overestimate repair costs by 2-5x. Learn how sellers can decide what to fix, credit, or leave alone.

This news matters because it reveals a hidden factor that can cost sellers tens of thousands of dollars: buyers’ tendency to inflate repair costs by up to five times. Understanding the friction tax empowers sellers to prioritize repairs strategically, use credits effectively, and avoid unnecessary work that doesn’t yield a return. In a competitive market, this insight can mean the difference between a lowball offer and a successful sale at the right price.